Huge Arlington Downs project under way

March 26, 2013|By Sally Ho, Chicago Tribune reporter

Construction officially began this month on the Arlington Downs project, a 25-acre, $250 million mixed-use redevelopment plan slated to include what would become the tallest building in the village of Arlington Heights.

The Arlington Downs development is expected to be one of the largest projects in the village's history.

Once completed, Arlington Downs essentially will become its own neighborhood, with an expanded water park, hotel, retail, restaurants and hundreds of housing units on the west side of town.

Most of the current lot sit empty, but the former Sheraton Hotel property and the former CoCo Key Water Resort are still standing at Rohlwing Road and Euclid Avenue. Both establishments closed in recent years.

The first phase of the project will be converting the hotel into 214 apartment units with rental rates expected to be up to $1,900. The first floor of the building will feature retail establishments, restaurants and a health club. Tenants could move in as soon as next year, said Rick Cavenaugh of Barrington-based Stoneleigh Companies. Stoneleigh is developing the housing components to Arlington Downs, while Chicago-based Argent Group is leading the rest of the project.

The water park will also be remodeled and expanded by 10,000 feet later this year. Alongside it, a "limited service" hotel catering to business travelers and water park-goers will be built with 160 rooms in the fall of 2014.

The plans for the last two phases of Arlington Downs will depend on the first half of the project, according to Cavenaugh.

The developers want to use 10 acres of the lot in the southwest corner for retail. Those shops currently are envisioned to include options like grocery stores, restaurants, banks and drug stores. Cavenaugh said the property has gotten interest from national and local retailers.

On the eastern end of the lot, the final piece of the Arlington Downs project would be a 450-unit apartment tower. It is currently zoned to be as tall as 19 stories high and if built to plan, will be the tallest building in Arlington Heights, said Charles Perkins, the village's director of planning and community development. The tallest buildings in Arlington Heights are now 13 stories tall.

Arlington Downs' $250 million construction value also makes it among the village's largest developments – only the rebuilt Arlington Park racetrack has had as much of an impact.

The site is projected to bring in about $1 million in taxes annually for the village, according to Perkins.

Cavenaugh said the property location was a major draw for developers, despite it being in a largely industrial and undeveloped area. Being near Illinois Highway 53 offers easy access to I-90 and its proximity to the Arlington Park racetrack and a Metra stop will be key in attracting tenants, he said.

"Within 10 to 20 minutes, you can get to about 40 percent of the major centers around Chicago," Cavenaugh said.